BRUKIN, West Bank — Mustafa al-Haj expected to die in an Israeli prison for killing an American-born settler hiking in the West Bank in 1989. Now lights decorate his home to celebrate the planned release of the 45-year-old and more than 100 other Palestinian convicts in a deal that revived Mideast peace talks.

While the Palestinians are joyful, the decision to free the inmates has stirred a